** UBS cuts Puma PUMG.DE from "neutral" to "sell" as it sees more challenges ahead, which might lead to further deterioration in its performance before a turnaround

** The company's latest results reinforced concerns about structural challenges, which could result in slower top line growth and softer margins, it says

** This is mainly due to an ever evolving competitive landscape, the pivot towards the margin dilutive direct to customer channel and pressure in the wholesale channel from rivals Adidas ADSGn.DE and Nike NKE.N, it adds

** This could prompt a strategic overhaul and initiate the brand's turnaround process, but an increase in investments would keep EBIT margin at around 5% for a prolonged time, UBS says

** Shares dropped as much as 23% after Puma reported results earlier this week and, up to the previous session's close, they were down 50%​ YTD

(Reporting by Isabel Demetz)

((Isabel.demetz@thomsonreuters.com))